QFLEET ELECTRIC VEHICLE TRANSITION STRATEGY
For the Queensland Government motor vehicle fleet
Minister’s foreword
When the Queensland Government released Agencies can also take advantage of the Queensland The Future is Electric: Queensland’s Electric Electric Super Highway — the growing network of fast Vehicle Strategy last year, we made a recharging stations that has become the world’s longest electric super charger highway in a single state, already commitment to transition the government stretching from Cairns to the Gold Coast. fleet to electric vehicles. This challenge is Importantly, the QFleet Electric Vehicle Transition Strategy being met by QFleet, the commercialised will play a major part in reducing the fleet’s greenhouse business unit in the Department of Housing gas emissions and contribute to the government’s goal of and Public Works, responsible for the achieving zero net emissions by 2050, supported by a 50 procurement and management of the per cent renewable energy target for Queensland by 2030. Queensland Government fleet. When QFleet had its beginnings some 25 years ago, the idea of fully electric, rechargeable passenger and The QFleet Electric Vehicle Transition Strategy establishes light commercial vehicles being available to the general this new technology firmly on the government’s fleet public was a new concept. But if low-pollution transport agenda. The current inclusion of electric vehicles in was a desirable aspiration then, it is a critical goal now; QFleet’s fleet, and the intention to at least double their revelations about greenhouse gas emissions, climate number each year for the next four years, will demonstrate change and their likely consequences have seen to that. their suitability as part of a multi-functional and versatile Electric vehicles play an increasingly important role in our vehicle pool. emissions reduction activities and in building a culture of This leadership position will be sustained, and fleet environmental sustainability. negotiations are already underway with vehicle They promise to be an exciting part of our journey towards manufacturers to pave the way for early access to new a low-carbon future. electric vehicle models when released onto the Australian market. With a combined fleet of more than 10,000 vehicles located across the state, departments will have many opportunities to make the shift to electric models as vehicles fall due for replacement over the coming months The Honourable Mick de Brenni MP and years. With their support, this strategy will make the Minister for Housing and Public Works, Minister for Digital transition a reality. Technology and Minister for Sport
QFLEET ELECTRIC VEHICLE TRANSITION STRATEGY 1 Introduction
The Queensland Government has committed to take an The shift to electric vehicles will expand over the active role in preparing Queensland for the introduction next decade and beyond, and will be a dynamic process of electric vehicles, ensuring the state is best placed to as the technology improves and the market continues to capture the benefits this change will bring. develop. The Future is Electric: Queensland’s Electric Vehicle BEVs (and PHEVs when running on their electric motors) Strategy was released in October 2017 by the then produce virtually no tailpipe greenhouse gas emissions. Treasurer and Minister for Trade and Investment, the And the emissions produced for recharging the vehicles is Honourable Curtis Pitt MP; and the then Minister for potentially zero when using green power or solar power. Main Roads, Road Safety and Ports and Minister for Recharging from the standard grid will become less Energy, Biofuels and Water Supply, the Honourable emissions intensive as Queensland progresses towards Mark Bailey MP. the government’s target of deriving 50 per cent of its An electric vehicle is defined as any vehicle that is fully or energy from renewable sources by 2030, announced by partially driven by an electric motor and can be plugged- government in Pathways to a clean growth economy – in to recharge. They comprise two main types: Queensland Climate Transition Strategy in 2017. • the battery electric vehicle (BEV) • the plug-in hybrid electric vehicle (PHEV).
2 QFLEET ELECTRIC VEHICLE TRANSITION STRATEGY The Strategy
Focus areas for electric vehicle uptake 1. Replace existing vehicles with PHEV models QFleet will encourage agencies to replace existing QFleet is embracing the transition of its conventional internal combustion engine (ICE) vehicles fleet to electric vehicles and will adopt with PHEVs of a similar type. This is intended to overcome a proactive leadership approach to the ‘range anxiety’ of agencies and drivers concerned increasing the number of electric vehicles about becoming stranded in a BEV if the battery should in its fleet. This will integrate seamlessly run completely out of power while on the road. It will also overcome qualms agencies might have about having and concurrently with the other emissions vehicles with restricted capability in their fleets/pools. reduction initiatives being undertaken. 2. Introduce electric vehicles into car sharing pools There are six focus areas: (CBD and larger regional centres) There are already three PHEVs in QFleet’s Brisbane CBD car sharing pool of 16 vehicles. Having proved popular 1. Replace existing vehicles with PHEV models. with customers, the number will be increased as ICE 2. Intr oduce electric vehicles into car sharing vehicles fall due for replacement and new Brisbane pools (CBD and larger regional centres). car sharing precincts are added. BEV units will also 3. Intr oduce BEVs to match existing lease be introduced as suitable models become available vehicle replacements. on the market. 4. Inc entivise agencies to take up electric Similarly, PHEVs and BEVs will be included in the vehicle vehicles. mix in regional car sharing pools, with due regard to the nature of each location and vehicle usage patterns. Introduce electric vehicle evaluations. 5. Feasibility of expanding the car sharing model to Cairns 6. Exp lore opportunities encouraging and Townsville is being explored for implementation manufacturers to speed up the importation of in 2018-19. electric vehicles through bulk purchasing deals By utilising car sharing electric vehicles, drivers will across state boundaries. experience the technology and become more accepting, and enthusiastic about having these vehicles in their agencies’ fleets.
QFLEET ELECTRIC VEHICLE TRANSITION STRATEGY 3 3. Introduce BEVs to match existing lease Another incentive QFleet will explore is end-of-lease vehicle replacements adjustment. One of the considerations when determining QFleet assists many customer agencies in developing a lease rate is the residual value of the vehicle—the price expected to be realised by the vehicle sale at end-of- and reviewing the annual vehicle replacement programs. lease. Because of the relative newness of the electric QFleet’s fleet consultants will possess the knowledge and vehicle market and uncertainty throughout the industry tools to identify where BEVs (and PHEVs) are a good fit in about resale values, projected residual values need to agency fleets and encourage uptake. be quite conservative. Including a lease adjustment This will be supported by access to loan or evaluation arrangement in electric vehicle lease agreements assures models. agencies that if a vehicle is sold for more than the residual value, QFleet will adjust lease rates accordingly. 4. Incentivise agencies to take up electric vehicles QFleet will investigate the option of cross-subsidising 5. Introduce electric vehicle evaluations electric vehicle lease rates, to reduce the effect on QFleet will motivate customer agencies to participate in customer agencies of the comparatively higher purchase evaluating electric vehicles in order to (a) assess costs. The concept involves introducing a loading the vehicles’ suitability for inclusion in the QFleet fleet on higher emission vehicles leases and a parallel (b) enable agencies to gain hands-on experience with the discounting for electric vehicle leases. This would provide new technology (c) stimulate interest and uptake of BEVs an incentive for agencies to take up electric vehicles and and PHEVs. reward their behaviour change. The lease adjustments In many cases, customer agencies will have the would be managed so as to have no net financial impact option to convert a short-term evaluation direct on the business. to a lease agreement.
QFleet emission reduction projection 2018-2030
EMISSIONS
RELATIVE CONTRIBUTION TO REDUCTION TO CONTRIBUTION RELATIVE Emissions reduction achieved by 2030 will be at least 30% below 2005 levels, as per government commitment.
YEAR
HFC vehicle replacement PHEV vehicle replacement ICE lower emission replacement Fleet downsizing
BEV vehicle replacement Hybrid vehicle replacement ICE technology improvement (LL) Residual CO emissions
4 QFLEET ELECTRIC VEHICLE TRANSITION STRATEGY Evaluation programs will include regional centres where These negotiations have a primary focus on purchase electric vehicles have a potential for inclusion price. Bulk-buy arrangements with manufacturers can in local fleets or pools. achieve procurement discounts and QFleet has employed this method to realise significant savings for customer QFleet will arrange for manufacturers to conduct electric agencies and government. Leasing and buy-back vehicle information events exclusively for government, opportunities will also be explored as a risk mitigation where customer agencies can learn from industry experts, option. have questions answered and enjoy hands-on experience. Given the relatively high purchase cost of electric vehicles and the expected modest initial uptake by Establishing well-structured evaluation programs and agencies, QFleet will investigate the benefits of engaging gathering meaningful customer feedback will inform with other jurisdictions — local councils and state and vehicle replacement programs and potentially encourage territory governments — to negotiate aggregated volume manufacturers to increase supply. procurement. 6. Explore opportunities encouraging manufacturers to QFleet will be a major participant in the Queensland speed up the importation of electric vehicles through Electric Vehicle Council — a government/industry bulk purchasing deals across state boundaries consultative group under development by the Department QFleet will include electric vehicle procurement in its of Transport and Main Roads and including other strategic discussions with vehicle manufacturers at agencies with owned fleets, such as the Queensland quarterly contract review meetings and during the annual Police Service and Queensland Public Safety Business price and volume commitment process (next scheduled Agency. for April–June 2018). Of interest will be: In this way, electric vehicles will play a key role in • market intelligence regarding the future release of reducing QFleet’s greenhouse gas emissions. electric vehicle models and upgrades Short-term increase target • advice to manufacturers of the types/models of electric vehicles that will attract government sales With this leadership approach, QFleet will double the number of electric vehicles in its fleet each year during • gaining early access to new electric vehicles for the next four years, increasing from 18 to 288. evaluation purposes.
Projected electric vehicle uptakePROJECTED (minimum) ELECTRIC VEHICLE UPTAKE (MINIMUM)
0 50 100 150 200 250 300
*
Projection may be exceeded depending on manufacturer release of additional models on the Australian market. *April 2018
QFLEET ELECTRIC VEHICLE TRANSITION STRATEGY 5 Electric vehicle availability
The evolving electric vehicle market in few years. There are 11 electric vehicles currently offered Australia on the Australian market. However, some models are considered either (a) unsuitable because of likely negative Only a modest range of EVs that are suitable for general public perception of the model e.g. luxury or sports use in the Queensland Government fleet are either appearance/performance, and/or (b) questionable on the available now or are certain to be available in the next basis of their high purchase cost.
Electric vehicles currently available across the Australian market (as at February 2018)
MANUFACTURER MODEL TYPE
BMW i3 94Ah- Small BEV
BMW i3 94Ah Range Extender - Small BEV
BMW i8 - Sports PHEV
Mitsubishi Outlander - SUV PHEV
Mitsubishi Outlander Aspire - SUV PHEV
Tesla S 75D - Sports BEV
Tesla S 100D - Sports BEV
Tesla S P100D - Sports BEV
Tesla X 75D - Sports BEV
Tesla X 100D - Sports BEV
Tesla X P100D - Sports BEV
Robust projections for upcoming electric vehicle releases will be released in Australia and the timeframes for their in Australia cannot realistically be made at this time. introduction. While many manufacturers have models in production or Notwithstanding these constraints, QFleet will maintain a advanced planning in the northern hemisphere, most are calendar of projected electric vehicle availability based on only being produced in left-hand-drive format while others the best industry intelligence available. are in the luxury or sports car categories. Because of this and for reasons of commercial sensitivity, manufacturers are unable to make firm commitments as to which models
6 QFLEET ELECTRIC VEHICLE TRANSITION STRATEGY Anticipated new electric vehicles scheduled for future release across the Australian market (as at February 2018)
MANUFACTURER MODEL TYPE EXPECTED
BMW i3 - Small Sedan BEV April 2018
Renault Zoe - Small Sedan BEV May 2018
Renault Kangoo - Small Van BEV May 2018
Hyundai IONIQ - Small Sedan BEV November 2018
Hyundai IONIQ - Small Sedan PHEV November 2018
Jaguar I-PACE - Medium SUV BEV November 2018
Mini Countryman - Small Sedan PHEV November 2018
Nissan Leaf - Small Sedan BEV December 2018
Audi e-tron - Sportsback BEV June 2019
Tesla Model 3 - Medium Sedan BEV July 2019 Volvo Each type of Volvo vehicle will have an electric or hybrid motor by mid-2019. Hyundai Medium SUV FCEV September 2019
Skoda Superb - Large Sedan PHEV October 2019
The information in this table is current at the time of publication and may be subject to change.
Suitable for inclusion in QFleet general offering to customers Possible though limited suitability
May not be suitable e.g. high purchase price, public perception Insufficient information currently available (luxury/sports vehicle)
QFLEET ELECTRIC VEHICLE TRANSITION STRATEGY 7 In assessing vehicles for inclusion in its fleet, QFleet will take into consideration factors such as: • suitability in terms of public perception • ANCAP safety rating • total cost of ownership (including purchase cost and projected residual value) • fit-for-purpose suitability • recharging requirements and available infrastructure. Recharging infrastructure for government vehicles Under The Future is Electric: Queensland’s Electric Vehicle Strategy, the Queensland Government will undertake an electrical infrastructure analysis of government buildings, in order to understand the opportunities and barriers to installing EV charging. The lessons learnt from this study are not only intended to be used to support the roll-out of EV charging infrastructure in government owned buildings for government EVs, but will also inform building guidelines and regulations to ensure the installation of EV charging infrastructure can become a straightforward task. This exercise will inform the progressive deployment of QFleet electric vehicles in government offices in Brisbane and regional centres. Government drivers travelling longer distances will also be able to take advantage of the government’s expanding Queensland Electric Super Highway, the world’s longest electric fast charging highway in a single state.
8 QFLEET ELECTRIC VEHICLE TRANSITION STRATEGY Referenced documents The Future is Electric: Queensland’s Electric Vehicle Strategy https://publications.qld.gov.au/dataset/the-future- is-electric-queensland-s-electric-vehicle-strategy/ resource/7e352dc9-9afa-47ed-acce-2052cecfec8a Pathways to a clean growth economy – Queensland Climate Transition Strategy https://www.qld.gov.au/environment/assets/ documents/climate/qld-climate-transition-strategy.pdf
QFLEET ELECTRIC VEHICLE TRANSITION STRATEGY 9 For more information
GPO Box 293, Brisbane Qld 4001
www.qfleet.qld.gov.au